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Tag Archive: Short (finance)


Primer on Hedge Funds

Hedge fund is a type of private and unregistered investment-pool that employs sophisticated hedging and arbitrage techniques in both Googledomestic and international markets to generate high returns.

Traditionally Hedge funds have been limited to sophisticated, wealthy investors because they required a large initial investment.

Earlier most of the hedge funds strategies such as leverage, long, short and derivative positions were focused on corporate equity markets. But now hedge funds new focus areas are commodities and money markets.

Because hedge funds are unregistered, they can use securities and strategies that are either prohibited or restricted in registered funds. That is why -hedge funds are also referred as non traditional or alternative investment.   Continue reading

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It’s not mandatory that all good investors are good writers and visa viz that all good finance writers are good investors. imagesIt’s the experience of the people who is good or bad that counts. Here again some of the best remarks from Peter Lynch :

  1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
  2. Gentleman who prefers bonds don’t know what they are missing.
  3. Never invest in any idea you can’t illustrate with a crayon.
  4. You can’t see the future through a rear view mirror
  5. There’s no point paying Yo-Yo Ma to play a radio.
  6. As long as you’re picking a fund, you might as well pick a good one. Continue reading

The Risk Arbitrageur

Talking about Arbitrage –  drama film directed by Nicholas Jarecki and starring Richard Gere. A troubled hedge fund downloadmagnate desperate to complete the sale of his trading empire makes an error that forces him to turn to an unlikely person for help.

It is well-known that risk arbitrageur play an important role in the market for corporate control. After a tender offer, the trading volume increases dramatically in large part because of risk arbitrageurs activity. Continue reading

Indian market regulator SEBI has allowed seven Alternative Investment Funds (AIF) to set up shop in the country under a newly formulated route, which allows pooling of funds for investments in areas such as real estate, private equity and hedge funds.

Alternative investments are not a new concept but seems to be gaining momentum, I did a story in March 2012 under the heading ART TREATED AS AN ALTERNATIVE INVESTMENT .Would like to evolve on those terms, Lets face it : Continue reading

 

Yesterday saw the Arbitrage –  drama film directed by Nicholas Jarecki and starring Richard Gere. A troubled hedge fund magnate desperate to complete the sale of his trading empire makes an error that forces him to turn to an unlikely person for help.

It is well-known that risk arbitrageur play an important role in the market for corporate control. After a tender offer, the trading volume increases dramatically in large part because of risk arbitrageurs activity. They take long positions in the target stock, in the hope that the takeover will go through. They are also usually hedged by taking short positions in the Continue reading

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